Home Sales and Prices Improved Throughout 2012

ENGLEWOOD, Colo.--(BUSINESS WIRE)--The median sales price for single family homes, condominiums and town
homes sold during the fourth quarter of 2012 increased in all areas of
Colorado compared to the same time period in 2011, according to
Quarterly Market Statistical Reports released today by the Colorado
Association of REALTORS® (CAR). The number of homes sold during the
fourth quarter increased in all areas of the state over the previous
year, as well, while in most areas the number of new listings available
for purchase decreased.

For the state as a whole, sales of single-family, condominium and town
homes (taken together) increased nearly 16 percent to 20,229 units
during the fourth quarter of 2012 compared to the fourth quarter of
2011. New listings dropped slightly more than 2 percent statewide,
though some of the more rural areas of our state saw modest (3-8
percent) increases.

Home prices continued to rally, increasing about 12 percent to a median
price of $223,500. Days on the market continued its downward trend
dropping nearly 22 percent to 89 days on average. The statewide number
of active listings was 29,669, representing a 4.2-month inventory supply.

“These figures are very encouraging and suggest that Colorado’s place as
a leader in the recovery of our country’s housing markets is
continuing,” said CAR spokesperson, Duane Duggan. “Higher sales and
increasing median pricing, combined with fewer days on the market, are
all positive signs of good things to come. As the economy continues to
recover, overall housing affordability will stay strong and we should
expect to see more people entering the market in 2013.”

The Colorado Association of REALTORS® Quarterly Market Statistical
Reports are prepared by 10K Research and Marketing, a
Minneapolis-based real estate technology company, and are based on data
provided by Multiple Listing Services (MLS) in Colorado. The current Q4
2012 reports represent approximately 90 percent of all MLS-listed
residential real estate transactions in the state. The metrics do not
include “For Sale by Owner” transactions or all new construction.

Sales of lender-mediated properties (properties owned by banks and other
mortgage lenders, along with short sales) dropped significantly in most
areas of the state. Overall, such sales represented about 20 percent of
all transactions in the fourth quarter of 2012 and were down 30 percent
over the same period a year earlier.

The CAR Housing Affordability Index, a new statistical measure for
Colorado’s housing market, dropped about 3 percent to 167 for the state,
a similar drop occurred in the third quarter of 2012 compared to 2011.
An index of 120 means the median household income was 120 percent of
what is necessary to qualify for the median-priced home under prevailing
interest rates. A higher number means greater housing affordability.

In addition to cumulative statewide statistics, CAR has prepared six
regional reports, using the same measures, whose content is summarized
below along with local expert contacts.

Results for the six counties in the Denver Metro Region were slightly
higher when compared with the overall statewide results. The number of
sales rose 17 percent and median sales prices increased almost 13
percent. Days on the market dropped more substantially in Metro Denver
(-32 percent) than any other area of the state while new listings of
available housing were down 6 percent. As of the end of the quarter
there were approximately 11,000 active listings representing only a
2.8-month inventory.

Northeast Region (Boulder, Larimer, Logan,
Morgan, Weld) –

Contact: Duane Duggan – 303-449-7000

This region of Colorado is one of three in the study which showed an
increase in the number of new listings (8 percent). Sales increased 21
percent, the highest quarter-to-quarter increase in the state. The
median sales price grew 7 percent and days on the market decreased by
more than 14 percent. The CAR Affordability Index increased slightly but
stayed slightly below the state average of 167.

Southeast Colorado saw sales of homes increase by nearly 8 percent to
3,283 during the fourth quarter of 2012. Median sales price increased
more than 10 percent and days on the market declined by nearly 16
percent, among the largest declines in the state. While the CAR
Affordability Index showed a slight decline (-1.5 percent) the area’s
score of 200 is the second strongest in the state. At the end of the
year, this region had nearly 7,000 active listings which represent an
inventory that would last about six months.

This region of our state saw a second consecutive quarter of increased
new listings, up 2.9 percent compared to the fourth quarter of 2011.
Sales improved nearly 17 percent, median prices increased just over 10
percent and days on the market dropped 7 percent. This area of the state
had the largest proportion of lender-mediated sales (36 percent) but
also saw one of the largest drops in such sales compared to 2011 (-32
percent).

Median sales prices in this region increased approximately 13 percent,
one of the larger increases in the state. Number of sales increased
modestly (6 percent) and days on the market dropped slightly (-1.6
percent). The Affordability Index in this area dropped (-3 percent) but
still remains strong at 170. New listings were down 15 percent compared
to the fourth quarter of 2011.

Sales increased 20 percent in this region, which includes Colorado’s ski
resort communities, while days on the market declined nearly 10 percent.
With 2,400 active listings, this region has more than a one year supply
of inventory which, in these areas of the state, is not unusual. New
listings of available properties declined substantially (-25 percent)
while the median sales price rose by just under 3 percent.

Conclusion

Overall, the data indicates that Colorado continues to see a recovery
from its low point four years ago with some areas of the state doing
somewhat better than others.

Spokespersons throughout Colorado are available for interviews or to
answer specific regional questions. The reports cited in this press
release are available online at www.ColoradoREALTORS.com/HousingStatistics.

CAR QUARTERLY INDICATORS - KEY METRICS GLOSSARY

New Listings – This is a measure of how much new supply is coming
onto the market from sellers. For example, Q3 New Listings are those
listings with a system list date from July 1 through September 30.

Pending/Under Contract – This is the most real-time measure
possible for homebuyer activity, as it measures signed contracts on
sales rather than the actual closed sale. As such, it is called a
“leading indicator” of buyer demand.

Sold Listings – This measures how many home sales were actually
closed to completion during the report period.

Median Sales Price – This is a basic measurement of home values
in a market area and basically states that 50 percent of the homes sold
were either higher or lower than the Median Sales Price.

Average Sales Price – This is another basic measurement of home
values in a market.

Percent of List Price Received – The mathematical calculation of
the percent difference from the list price and the sold price for those
listings sold in the reported period.

Days on Market – A way to measure how long it is taking homes to
sell.

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The Colorado Association of REALTORS® is the state's largest real
estate trade association representing more than 19,000 members
statewide. The association supports private property rights, equal
housing opportunities and is the "Voice of Real Estate" in Colorado.For more information, visit www.ColoradoREALTORS.com.